BharatPe faces scrutiny from the Ministry of Corporate Affairs, demanding operational details and probing allegations of financial irregularities
BharatPe has been issued another notice by the Ministry of Corporate Affairs (MCA), demanding information regarding the operations of the digital payments company and its actions against co-founder Ashneer Grover, known for making headlines in the startup sphere.
The Ministry also inquired about the findings outlined in a status report submitted by the Delhi Police’s Economic Offences Wing, which had probed accusations of financial improprieties within the organization, as per a report by the Economic Times.
The company acknowledged receiving the notice, stating that it pertains to an inquiry initiated in 2022. As per sources cited in the report, the Registrar of Companies has requested further details in a letter to the company.
The company was approached by the MCA in 2022, seeking information regarding its internal governance, investments in mutual funds, and stock options offered to independent directors, including the chairman, former State Bank of India chief Rajnish Kumar. Under Section 206 of the Companies Act, the RoC has issued a notice to the fintech firm, mandating the provision of sought-after information by companies.
Last year, the Delhi High Court had put a fine on the former Managing Director and co-founder of BharatPe, worth Rs 2 lakh for his social media posts against Bharat Pe. This occurred despite his assurance to the court that he would refrain from doing so. In November month, the company pursued a court injunction against Grover to prevent the disclosure of confidential company data. It also began arbitration proceedings in Singapore to recover Grover’s restricted shares.